A business owner missed a lucrative order because she couldn’t get an increase in her line of credit fast enough from her community bank. This was indicative of her bank’s lack of responsiveness to her needs. She vowed then and there to change banks.
The realization you can’t count your banker among your most trusted and dependable advisors serves as a signal to switch community banks. Other telltale signs can include your bank’s refusal to lend you funding necessary to expand (even when you have excellent credentials), its interest in only serving larger companies, its failure to match your company’s growth, or a lack of stability or responsiveness among its lending officers.
Here are more key signals to determine if the time’s right to switch banks.
- Failure to grow. You enjoyed your business banking relationship years earlier. But over time, your community bank hasn’t kept pace with your company’s growth. Now your needs exceed its legal lending limit. It’s time for a banking change.
- Passed over. Your community bank clearly has its eyes on a bigger prize. You sense the bank seeks much larger corporate customers, and therefore regularly shortchanges your company on service and responsiveness. You need to change community banks.
- Willingness to say “yes.” Banks are not all alike when considering loan requests. For instance, banks in your market area usually possess greater understanding of local companies like yours. This may make it easier for them to understand your company’s potential and say “yes” to your needs.
- Sub-par customer service. You wouldn’t continue doing business with vendors who consistently provide shoddy supplies. Why remain a customer of a community bank that delivers less than superior service? Time to change.
If these or other red flags loom, don't hesitate to change community banks. It’s imperative to your company’s health and your future growth.
What factors would spur you to switch community banks?